U.S. Stimulus, Lockdown Experiment, Argentina Deadline: Eco Day

(Bloomberg) -- Welcome to Friday, Americas. Here’s the latest news and analysis from Bloomberg Economics to help get you through to the weekend:

• Treasury Secretary Steven Mnuchin said Congress will very likely need to pass more stimulus legislation for the U.S. economy
  • The Fed may put off providing further guidance on its interest rate and balance sheet policies until the fall as it grapples with the uncertainties thrown up by the coronavirus crisis, Vice Chairman Richard Clarida suggested
• Argentina is bracing for its ninth sovereign debt default, though it intends to extend its self-imposed deadline for negotiations, set to expire Friday, until June 2
• Americans locked at home for more than two months seem resigned to participating in a coronavirus experiment that begins in earnest this Memorial Day weekend, with all 50 states open at least in part
• The Chinese government abandoned its decades-long practice of setting an annual growth target and said it would continue to increase stimulus
  • Bloomberg Economics says ditching the tradition relieves the government of the straight jacket the annual target placed on policy
  • China also reiterated a pledge to implement the first phase of its trade deal with the U.S. despite setbacks, and as tensions escalate between the world’s two biggest economies. Despite everything, the nation’s enthusiasm for some U.S.-built luxury cars didn’t wane in the first quarter
  • Meanwhile, Chinese stocks become bait again in rising U.S.-China tensions
• Europe’s food banks are seeing higher demand from professionals, self-employed -- a sign that the region’s relatively comprehensive safety nets are fraying
  • Two of Europe’s most cash-strapped countries are stepping up bond sales to fund the surge in spending needed to shore up their pandemic-battered economies
• Britain posted a record budget deficit in April as the government unleashed an unprecedented package to prevent the collapse of the virus-stricken economy

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